Moses Daniel
President Bola Ahmed Tinubu has sought the approval of the House of Representatives for the implementation of the Federal Government’s ₦10.79 trillion external borrowing plan provided for in the 2026 Appropriation Act to finance part of the national budget deficit.
The proposed borrowing, equivalent to $7.71 billion at the budget exchange rate of ₦1,400 to the dollar, was conveyed in a letter read by the Speaker of the House, Tajudeen Abbas, at plenary on Wednesday.
In the letter, Tinubu explained that the external borrowing formed part of the ₦29.22 trillion new borrowing approved for the 2026 fiscal year, comprising ₦18.28 trillion in domestic loans and ₦10.79 trillion in external financing.
The President said the funds would be used for the “part financing of the budget deficit”, in accordance with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003.
He noted that the government would explore multiple financing options simultaneously, while prioritising Eurobond issuance because of its relatively shorter completion timeline.
“All options will be pursued simultaneously, considering the cost benefit to the country as well as the time required to access the funds. In view of this, emphasis will be on the issuance of Eurobonds, which is typically faster to conclude,” Tinubu said.
According to the President, the proposed external loans would support critical projects and programmes captured in the 2026 budget, particularly in defence and security, transportation, agriculture, power, education and healthcare.
He added that the proceeds would also help strengthen Nigeria’s external reserves and support the naira, noting that the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
Tinubu consequently requested legislative authorisation to raise the funds through multilateral and bilateral institutions, commercial lending windows, the International Monetary Fund, bridge financing facilities and Eurobond issuance.
However, Abbas clarified that the President’s request did not constitute a fresh borrowing proposal, stressing that the ₦10.79 trillion external borrowing component had already been provided for in the 2026 Appropriation Act passed by the National Assembly.
The Speaker explained that the request was intended to satisfy the statutory requirement for legislative approval of the terms and conditions of external loans before their implementation, as stipulated in the DMO Act.
“For the avoidance of doubt, this request is distinct from the President’s more borrowing request. It neither supersedes nor withdraws that request, which remains subject to consideration on its own merit,” Abbas said.
The development comes amid growing concerns over Nigeria’s borrowing requirements, with the 2026 budget projecting a deficit of ₦31.55 trillion and identifying ₦29.22 trillion in new borrowing as a major source of financing.
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